Optimism is growing around Algoma Steel Group Inc.’s financial future as leading equities research firm Cormark recently lifted its earnings per share (EPS) estimates for the fiscal year 2026. This revised forecast highlights evolving analyst perspectives on the steel producer’s profitability trajectory, offering crucial insights for potential investors navigating the current market dynamics.
Cormark’s analyst D. Ocampo now projects Algoma Steel Group to achieve $0.64 per share for FY2026, a notable increase from the previous estimate of $0.58. This upward adjustment by Cormark contrasts with the broader consensus earnings per share estimate for the full year, which currently stands at a negative ($0.63) per share, indicating varied expert opinions within the financial analysis community regarding the company’s short-term prospects.
Beyond Cormark’s bullish revision, other prominent research houses have also weighed in on Algoma Steel’s valuation and outlook. BMO Capital Markets shifted its stance from a “strong-buy” to a “hold” rating, while Royal Bank of Canada and Stifel Canada also moved to “hold” ratings, signaling a more cautious sentiment across the industry. One analyst even reduced their rating to a “sell,” reflecting a complex landscape of expert opinions on the steel sector’s performance.
On the stock market, Algoma Steel Group shares opened at $5.14 recently, trading within a significant 12-month range from a low of $4.17 to a high of $12.14. The stock’s performance metrics include a 50-day moving average of $6.34 and a two-hundred-day moving average of $6.40, providing technical indicators of its recent price trends and stability for those conducting thorough financial analysis.
An examination of Algoma Steel’s financial health reveals several key ratios: a current ratio of 2.46, a quick ratio of 1.47, and a debt-to-equity ratio of 0.47. The company’s market capitalization stands at $539.36 million, alongside a negative PE ratio of -2.30 and a beta of 1.65, which collectively paint a detailed picture of its liquidity, leverage, valuation, and market volatility, essential elements for comprehensive investor insights.
The company’s most recent earnings report, released on July 29th, showed Algoma Steel reporting an EPS of ($0.74) for the quarter, falling short of analysts’ consensus estimates of ($0.45) by a significant margin. Furthermore, the report highlighted a negative return on equity of 22.24% and a negative net margin of 13.51%, underscoring the operational challenges the company has faced despite quarterly revenue of $433.14 million.
Institutional investors and hedge funds have actively adjusted their positions in Algoma Steel Group, with several new acquisitions noted in recent quarters. Firms like EJF Capital LLC, Aquatic Capital Management LLC, Aigen Investment Management LP, Squarepoint Ops LLC, and Two Sigma Advisers LP have initiated new stakes, collectively accounting for 72.00% of the company’s stock ownership, indicating significant institutional confidence or strategic maneuvering in the steel industry.
Algoma Steel Group Inc. is a prominent producer of steel products primarily for the North American market. Its diverse offerings include flat/sheet steel products for industries such as automotive and light manufacturing, as well as plate steel products vital for construction, railcars, and military applications, positioning the company as a key player in the foundational materials sector, influenced by broader market trends.
